As a result of news that telecom tycoon Sunil Mittal is considering a stake in the company, shares of One97 Communications, which owns Paytm, increased 5% to Rs 655.30 in intraday trading on the BSE on Monday.
In an otherwise sluggish market, the shares of the fintech company has increased 8% during the last two trading days. Paytm was trading 3 percent higher at Rs 642 at 09:28 a.m., while the S&P BSE Sensex was down 0.22 percent. In the first 13 minutes of trading, about 3.2 million equity shares were exchanged on the counter on the NSE and BSE.
According to a Bloomberg story, Indian telecom mogul Sunil Mittal wants to acquire a share in Paytm by combining his financial services business with the payments bank of the fintech behemoth.
According to the report, Mittal wants to merge Airtel Payments Bank and Paytm Payments Bank through a stock transaction and also wants to purchase Paytm shares from other shareholders. Airtel and Paytm may not achieve an agreement at this early stage of negotiations, the report said. Another Bloomberg article, citing people familiar with the situation, claimed that Ant Group Co. is considering selling part of its shares in the company that runs the Indian financial technology company Paytm in order to retain its position within the required range.
One 97 Communications Ltd.’s share % climbed passively as a result of share buybacks, thus the Chinese fintech behemoth has been debating how to cut its holding, according to Bloomberg. Paytm repurchased shares earlier this month for a total value of Rs 849.83 crore, at an average price of Rs 545.93 per share. In accordance with a regulatory filing, the corporation repurchased 15.57 million shares for a price ranging between Rs 702.65 and Rs 480.25 per share.
Due to superior financial results in the October-December quarter, Paytm has outpaced the market in the past month by increasing by 25%. (Q3FY23). In contrast, the S&P BSE Sensex only slightly increased throughout that time, by 0.11 percent. Nevertheless, compared to the benchmark index’s 5% decline during the previous three months, it has increased by nearly 50%.
Paytm’s Ebitda (earnings before interest, taxes, depreciation, and amortisation), a measure of operating profit, increased to Rs 31 crore in Q3FY23 before ESOP cost margin. According to the company, revenue growth across all businesses, strict cost control, and operating leverage helped it achieve operating Ebitda profitability three quarters earlier than anticipated.